Tata Hitachi Construction Machinery on Tuesday revealed plans to invest Rs 200 crore in its two manufacturing facilities to maintain a competitive edge in quality, innovation, and localisation.
Managing Director Sandeep Singh said the company, a joint venture with a 40:60 partnership between Tata and Japan's Hitachi, aims to raise localisation levels to 70% in the next 2-3 years.
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Tata Hitachi plans to produce 60-tonne dump trucks in India using technology sourced from Hitachi Canada, mainly for the mining industry.
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Additionally, the company intends to introduce more models in India as part of the 'Atmanirbhar' (self-reliant) policy started long back, the executive said.
"We'll invest a total of Rs 200 crore in our two plants in West Bengal's Kharagpur and Dharwad in Karnataka," Singh said. "This will help us stay at the forefront of innovation and increase self-reliance (Atamnirbharta) to 70% in 2-3 years from the current 65%."
The company is celebrating its 40th anniversary of the partnership between the Tata Group and Japan-based Hitachi.
Singh said localisation is an ongoing process and crucial for cost control.
He stated that the Kharagpur plant is the largest excavator plant in southeast Asia with an investment of Rs 1,100 crore.
The total cumulative capital expenditure, including Dharwad, will be Rs 2,000 crore, the company official said.
Singh expressed optimism about the upcoming Union budget, expecting a boost to infrastructure development, which will drive demand for equipment in the second half of the year.
"We hope the budget maintains its focus on infrastructure. The growth is expected to remain flat this fiscal," Singh said. The first half of the fiscal was down due to elections and monsoon.
The market size of excavators is approximately 1.25 lakh units, with Tata Hitachi commanding a 24% share, he said.
Despite pressure from Chinese imports, the company aims at 8 per cent revenue growth.
In FY24, the company achieved a revenue of around Rs 5,000 crore, with both plants operating at 75-80% capacity.
(With Inputs From PTI)
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